There’s a reason so many retailers have permanently closed their doors in the past few years.
The pandemic did a number on the industry, and many retailers failed to fully recover from the events of 2020. Not being able to serve customers in person for a period of time hurt numerous popular chains to the point where they couldn’t be saved.
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More recently, inflation has been hammering retailers, tightening margins, and driving consumers to spend less.
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Several popular stores have shuttered due to these challenging conditions. And a good number of well-known chains have been forced to file for bankruptcy.
Famous mall retailer Express filed for bankruptcy in April of 2024, citing declining sales. And this past March, Forever 21 filed for bankruptcy for the second time, citing competition from discount retailers such as Temu and Shein.
Image source: Getty
Department stores have been closing, too
It’s not just mall chains that have closed their doors for good in recent years. Department stores have also been hurt by persistent inflation and changing consumer habits.
Macy’s has been shuttering stores in response to poor sales. Kohl’s, meanwhile, closed a few dozen locations this year that were sluggish performers.
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Bloomingdale’s also closed its flagship store in San Francisco earlier this year.
And now, with the threat of tariffs looming, more store closures could be in store for the second half of 2025 and beyond.
Neiman Marcus was saved from closing, but its future is still shaky
Earlier this year, Neiman Marcus announced plans to shutter its flagship store in downtown Dallas. The store has been open for more than 100 years.
At a time when department stores seem to be falling out of favor, at first, the situation seemed like another case of waning consumer demand.
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But Saks Global, which owns Neiman Marcus, said the closure wasn’t due to sluggish sales. Rather, the company cited a dispute with its landlord as the reason behind the planned closure.
Dallas city officials tried intervening to prevent Neiman Marcus from closing for good. And their efforts paid off.
Initially, Saks stood firm on closing the store by the end of March. But the company has since announced that it plans to have the store remain open through the 2025 holiday season.
“We’re committed to the Neiman Marcus name, period, but in Dallas, absolutely. This is not something that can be messed with,” said Saks Global CEO Marc Metrick.
But while Neiman Marcus won’t be shuttering just yet, it’s unclear what will happen once the holiday season is over.
Saks said it’s working with the City of Dallas to reimagine the store and look at ways to reinvent the space with the goal of making it a “modern fashion, art, and entertainment destination.”
But whether those changes end up sitting well with customers is up in the air.
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Losing a beloved store would deal a huge blow to the City of Dallas, so city officials will likely support whatever direction Saks chooses to take with its famous retail space.
But customers may have to adjust to a new version of Neiman Marcus – one that could look very different from the store they’ve known and loved for over a century.
